Thinking about buying a Smokies cabin or condo to use as a short-term rental? You are not alone. Before you run the numbers, you need to know how Sevierville, Sevier County, and your HOA treat vacation rentals. In this guide, you will learn how to confirm the right jurisdiction, what permits and taxes to expect, what zoning and safety rules commonly apply, and why HOA covenants can make or break your plan. Let’s dive in.
Know your jurisdiction first
Determining whether a property sits inside the City of Sevierville or in unincorporated Sevier County is step one. Your compliance path, contacts, and fees depend on this. Use the parcel’s address or tax map ID to confirm jurisdiction, then call the appropriate office to verify current rules and processes.
Inside Sevierville city limits
If the property is within Sevierville, plan to work with city Planning and Codes, Business License, and Code Enforcement. Many cities require a specific short-term rental registration or business license, designate a local contact, and outline inspection and renewal procedures. Policies and fees can change, so ask about today’s steps and timelines.
In unincorporated Sevier County
If the property is outside city limits, you will work with Sevier County Planning and Zoning, Building Codes, and Environmental Health. For homes on septic, county Environmental Health is the place to discuss system capacity and inspections tied to lodging use. Always verify the current process with staff for your exact parcel and use.
Neighboring towns use different rules
Properties in Gatlinburg, Pigeon Forge, and other municipalities follow their own ordinances. Do not assume one city’s approach matches another. Confirm the correct jurisdiction first, then review that city’s or county’s requirements in writing.
Permits, licenses, and taxes to confirm
Short-term rentals fall under several layers of rules. Plan for each item below and build it into your timeline and budget.
STR registration or business license
Many local governments require a distinct short-term rental registration or business license. Expect to list a responsible local contact and update information at renewal. Some places also require a conditional or administrative permit for non-owner-occupied rentals. Verify the exact form, fees, and renewal cycle for your address.
Building permits and Certificate of Occupancy
Check that prior renovations were properly permitted and that the dwelling has an appropriate Certificate of Occupancy or permit history. This helps avoid delays during inspections and prevents surprises at renewal time.
Health and septic documentation
If the home uses a septic system, you may need proof of septic capacity or a recent inspection that supports your planned guest count. For sewer-connected homes, confirm the connection and any local documentation required for transient lodging uses.
Sales tax and local occupancy taxes
Short-term rental operators typically register with the Tennessee Department of Revenue for sales tax and follow local rules for hotel or tourism development taxes. You are responsible for filing and remitting on schedule. If the seller already operated the property as a rental, request their tax registration and remittance history for review.
Safety inspections and ongoing compliance
Some jurisdictions require a life-safety inspection before issuing an STR permit and at renewal. Inspectors commonly check smoke and carbon monoxide alarms, egress from sleeping rooms, fire extinguishers, and address visibility. Keep maintenance dates and device locations documented.
Zoning, occupancy, and parking
Zoning dictates whether a short-term rental is allowed by right, allowed with conditions, or restricted. Even in permissive zones, occupancy and parking rules often apply.
Zoning basics to check
- Whether STRs are permitted in the property’s zoning district or need a conditional use permit.
- Overlay districts, resort or planned developments, and hillside or floodplain overlays that add rules.
- Accessory structure limits and whether converting a garage or guest house to an STR is allowed.
Occupancy limits
Cities and counties set occupancy in different ways. Some use a simple cap per bedroom, others use a per-unit cap or a square footage formula. In many places outside the area, a common framework is two persons per bedroom plus two, but local rules vary and may tie to septic capacity. Confirm the exact standard for your parcel and sleeping room count.
Parking and neighborhood expectations
Expect minimum on-site parking requirements tied to bedrooms or unit size. Some areas restrict on-street parking or require a guest parking plan. In mountain settings, steep or narrow driveways can limit usable spaces, so evaluate slope, turnarounds, and emergency access. Code enforcement often responds to neighbor complaints about parking, so plan for clear guest instructions.
Noise, trash, and nuisance controls
Quiet hours, event limits, and trash management are common conditions of STR permits. You may need to provide secured trash containers and a pickup plan. Some programs require a 24-7 local contact to respond to issues quickly.
Life-safety and building code items
Be ready to show working smoke and carbon monoxide alarms, safe egress from sleeping areas, appropriate railings, and properly placed fire extinguishers. Condo buildings may have additional fire separation and common area egress requirements.
HOA rules can override permits
Even if the city or county permits short-term rentals at your address, an HOA can prohibit or restrict them within the community through recorded covenants, conditions and restrictions. HOA rules are private contracts that run with the land and are enforceable.
Common HOA restrictions
- An outright ban on short-term rentals or a minimum rental period, such as 30 or 90 days.
- Required registration of renters with the HOA or background checks.
- Limits on advertising or use of short-term rental platforms.
- Guest parking caps and restrictions on events or commercial activities.
- Owner occupancy or manager-on-site rules.
How to verify HOA rules
Get the full, recorded CC&Rs, all amendments, bylaws, and the current rules and regulations. Request the HOA resale disclosure or owner’s certificate if available. Ask the manager or board in writing whether STRs are permitted, what the fine structure is, and whether there are active enforcement actions. Keep written confirmations in your file.
Change and enforcement risk
HOAs can often amend rules by the voting procedures in the documents. A community that allows short-term rentals today may adopt new limits later. Enforcement can include fines, suspension of privileges, and court orders. If CC&R language is ambiguous, do not assume it is allowed. Obtain written guidance and, when needed, legal counsel.
Compliance-first checklist
Use this quick checklist before you buy or list a property as a short-term rental:
- Confirm city or county jurisdiction by parcel ID and address.
- Identify zoning district and any overlays that affect use.
- Obtain CC&Rs, bylaws, rules, and amendments, plus any HOA minutes about rentals.
- Pull building permits, Certificate of Occupancy, and any code violation history.
- Collect septic records or sewer connection documentation.
- Review seller’s STR registration numbers and sales or occupancy tax filings, if any.
- Verify need for an STR permit, conditional permit, or business license.
- Count usable on-site parking and check driveway access and slope.
- Confirm life-safety items: smoke and CO alarms, egress, extinguishers, railings.
- Plan trash handling and container storage suited to local wildlife and pickup schedules.
- Identify required local contact availability and response expectations.
- Estimate permit and inspection fees, safety upgrades, insurance premiums, and ongoing tax filings.
How I vet Sevierville STRs
Here is the step-by-step workflow I use to evaluate a potential Sevierville-area short-term rental, from first look to closing conditions.
Initial screening
Confirm jurisdiction and zoning using the parcel search and city or county maps. Record the parcel ID.
Pull the zoning code for the parcel’s district and note whether STRs are permitted or require a conditional process.
Ask the seller for CC&Rs and HOA contact, recorded deed, recent survey or plat, building permits and C of O, septic records, and any STR registration or tax remittance history.
Written due diligence with stakeholders
Send a written request to the HOA or manager asking for rental policy, any fines or enforcement related to rentals, guest parking limits, and special community rules for owners and guests.
Contact the applicable planning or codes office to confirm whether a short-term rental permit or conditional approval is required, what inspections apply, fee schedules, and expected turnaround time. Save the name and contact details of the staff member who provided the information.
Contact the local fire department or fire marshal to identify life-safety items required for STR operation.
On-site property assessment
Verify the number of legal bedrooms and safe egress, count usable parking spaces, and evaluate driveway grade and turnarounds.
Check for smoke and carbon monoxide alarms, extinguisher placement, and the condition of stairs and railings. Note fuel sources and any fire risk.
Confirm whether the property is on septic or sewer and review septic capacity, age, and service records.
Compliance and financial modeling
Determine the cost and timeline to obtain required permits and complete any needed safety upgrades. Build these into your offer and cash flow plan.
Review past sales and occupancy tax registration and filings for the property if it was previously rented. Identify any potential liabilities.
Obtain insurance quotes for STR use and confirm with the lender whether short-term rental operations are permitted under the mortgage.
Legal review and contract protections
If HOA restrictions limit STRs, consult a real estate attorney about enforceability and risks. Consider title exceptions that disclose covenants.
Add contract contingencies requiring written verification that STR use is permitted and that you can secure required approvals within a defined timeline and budget.
Operational readiness
Identify a local manager or designated contact who can serve as a 24-7 point of contact if required by local rules.
Draft guest rules and a house manual that address quiet hours, parking, trash handling, and safety.
Next steps and common pitfalls
Build your timeline around permitting and possible inspections. Processes can take weeks to months, especially if safety upgrades or septic work is needed. Treat marketplace occupancy and revenue estimates as placeholders until you confirm compliance and realistic operating costs.
Common pitfalls include relying on platform guidance, overlooking HOA amendments, underestimating parking limitations, and assuming a septic system can handle peak guest counts. Verification and documentation up front save time, money, and stress later.
If you want a local, compliance-first partner to help you evaluate a property, reach out to Katina Ramsey. With 30-plus years of East Tennessee experience, you will get clear guidance, responsive communication, and a steady hand from search to closing.
FAQs
Do you need a permit to run a short-term rental in Sevierville?
- It depends on your location and zoning. Many properties require a short-term rental registration or business license, and some need a conditional approval. Confirm with the correct city or county office for your parcel.
How are occupancy limits set for Sevier County and Sevierville rentals?
- Local rules vary. Some use a cap per bedroom, others use a per-unit or square footage formula, and septic capacity can control occupancy. Ask the planning or codes office for the standard that applies to your property.
Can an HOA stop you from renting short-term even if the city allows it?
- Yes. HOA covenants are private rules that can prohibit or restrict short-term rentals and are enforceable through fines and court action. Always review recorded CC&Rs and get written confirmation from the HOA.
What taxes apply to short-term rentals in this area?
- Operators typically register with the Tennessee Department of Revenue for sales tax and follow local rules for hotel or tourism development taxes. Owners or managers must file and remit on schedule.
What parking rules should I plan for at a Smokies cabin?
- Expect minimum on-site spaces and possible restrictions on street parking. Driveway slope and turnarounds matter for safety and enforcement. Provide clear guest instructions and count only usable, legal spaces.
How long does STR permitting and setup usually take?
- Timelines vary by jurisdiction, inspection schedules, and needed upgrades. Plan for several weeks at a minimum, and longer if conditional approvals or septic work are involved.
